Defense MRO

download Defense MRO

of 13

  • date post

    14-Feb-2017
  • Category

    Business

  • view

    260
  • download

    0

Embed Size (px)

Transcript of Defense MRO

  • DefenseMRO

    Where from Here?

    April 2014John Johns

    Deputy Assistant Secretary of Defense(Maintenance)@nowhiteflagz

  • Where we are

    Reset of equipment from Iraq and Afghanistan

    Shift in strategic focus and use of forces

    Continued instability throughout the world

    Continued pressure on the budget

    2

  • $-

    $100

    $200

    $300

    $400

    $500

    $600

    $700

    $800

    FY48

    FY51

    FY54

    FY57

    FY60

    FY63

    FY66

    FY69

    FY72

    FY75

    FY78

    FY81

    FY84

    FY87

    FY90

    FY93

    FY96

    FY99

    FY02

    FY05

    FY08

    FY11

    FY14

    DoD Budget Authority(in FY14 Dollars)

    FY2014$496BBase$85BOCO

    Total:$581B

    Historic Trends in Defense Spending

    Iraq/Afghanistan

    Korea

    Nuclear Triad

    OCO

    -51%

    Vietnam

    Hollow Army

    -25%

    80s Buildup

    Peace Dividend

    -35%

    2001Workforce

    61K

    2011/13Workforce82K / 75K

    -25%

    3

  • ARMY 3rd / 4th quarter inductions

    cancelled all depots affected TOCs, Firefinder,

    PATRIOT, Blackhawk, aviation components, M1s, M88s, Howitzers, small arms

    Arsenal manufacturing

    MARINE CORPS Ground resourced at 30%

    of Base requirement M1s, MRAPs, AAVs,

    LAVs, Tactical Trucks Air

    > 100 Marine aircraft

    NAVY 3rd / 4th quarter inductions

    cancelled - all FRCs affected > 200 Navy Aircraft > 1200 engines/modules

    70% of ships mxin private yards

    25 availabilities 2 Refueling/complex overhauls

    AIR FORCE All ALCs affected

    150 aircraft 85 engines Sustaining engineering deferred Software engineering deferred

    CLS reduce at multiple sites

    CR/Sequestration/OCO Shortfall Effects

    4

  • CAPABILITY

    Quickly confront and defeat aggression from any adversary,anywhere, anytime

    PROTECT & PRIORITIZE

    Key investments in technology and new capabilities

    DIPLOMACY Strengthen

    key alliances & partnerships

    Build innovative partnerships

    MILITARY

    Smaller

    Leaner

    Technologically Advanced

    REBALANCE GLOBAL POSTURE

    Asia-Pacific

    Middle East

    Where We are Going

    5

  • Guiding Principles and Opportunities

    Maintain/Strengthen National Core capabilities Establish new capability in most efficient and effective

    manner possible Protect surge capability/capacity

    Flexibility Agility

    Strengthen expeditionary and integrated capabilities Aggressively increase effectiveness and efficiency

    in existing operations Cycle-times Quality Cost

    6

  • Actions Transition enduring requirements from OCO to Base

    Link metrics and ensure connectivity between warfightingcapability, readiness, and logistics requirements and budgets

    Synchronize statutes, policy, strategic planning, and governance

    Leverage strengths of both public and private sectors through partnerships

    Synchronize, and soundly structure, contracts, partnership agreements, and implementation agreements

    Develop and transition technologies that advance MRO capability, effectiveness and efficiency and embed ultra-high reliability in weapon system design 7

  • Warfighter Support

    8

    Provide authorities for Retrograde and Disposition / Demilitarization of equipment to meet operational timeline 17K pieces of rolling stock 4K containers of equipment & supplies 18K containers of contractor materiel

    Support post-2014 Afghanistan Resolute Support Mission footprint

    Further develop and enable operational concept for managing contractors in contingency operations

    Mature Inter-Agency logistics support concepts and operations

    Mature Non-Standard Urgent Needs support

    Increase focus on sustainment in SFA

  • Affordability and Lifecycle Management

    Published BBP PBL Comprehensive Guidance

    Completed F-35 O&S Cost Reduction Study

    Improve content of Life Cycle Sustainment Plans to include:

    O&S Affordability

    O&S Should Cost initiatives

    Use of PBL arrangements

    Publish O&S Cost Management Handbook

    Publish PBL Best Practices Guidebook

    Integrate PBL best practices with DAU course curricula

    Establish Senior Logistics Public-Private Partnership Council to facilitate cost reduction strategies across industry and DoD

    9

  • Supply Chain Efficiency Implementing Comprehensive Inventory Plan

    On-hand excess inventory reduced by $8B

    Excess inventory orders reduced from $1.1B to $564M

    Backorders and planned procurements reduced by $218M

    Developed Distribution Network re-engineering Phase I $402M in transportation savings

    Validate SNO Phase I savings of $402M in POM15 anddevelop Phase II inventory optimization business model

    Institutionalize enterprise supply chain metrics and performance reviews

    Leverage International / Joint Logistics Forums in support of global supply chain operations

    Published the DoD Counterfeit Prevention Policy10

  • Inventory Management

    11

    FY09 FY10 FY11 MarchFY12 FY12MarchFY13 FY13 FY14 FY15 FY16

    ExcessOnHand $8.8 $8.5 $9.5 $10.3 $7.5 $6.9

    Percentage 9.4% 8.4% 9.2% 9.9% 7.8% 7.2%

    Target 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 9.0% 8.0%

    0%

    3%

    6%

    9%

    12%

    $0

    $3

    $6

    $9

    $12

    $15

    Billion

    sofD

    ollars

    FY09 FY10 FY11 MarchFY12 FY12MarchFY13 FY13 FY14 FY15 FY16

    Total On-Order Excess Dollars $1,302 $892 $609 $631 $666 $754

    Total On-Order Dollars $13,647 $12,032 $10,885 $9,397 $11,003 $9,929

    % of On-Order 9.5% 7.4% 5.6% 6.7% 6.1% 7.6%

    Target % 7.0% 7.0% 6.6% 6.6% 6.3% 6.0% 5.0% 4.0%

    0%

    1%

    2%

    3%

    4%

    5%

    6%

    7%

    8%

    9%

    10%

    $0

    $200

    $400

    $600

    $800

    $1,000

    $1,200

    $1,400

    Mill

    ions

    of D

    olla

    rs

    On-Hand ExcessOnOrderExcess

    7.6%

    OnHandExcess6.4%

    Dontbuywhatwewontneed

    Dontkeepwhatwedontuse

    On-Order Excess

    Reducedonhandinventoryby$8Bfirstdecreasesince1998 InStorageVisibility increasedparticipationfrom243to508sites

    andsaved$218Minlateralredistribution&procurementoffsets Consolidatingwholesaleinventoryanddistributingretailsupportinventory Increasingaccountabilityforinventoryheldbycontractors RestructuredSupplyChainpolicyandreviewpractices Institutionalizebalancedreadiness andcostdrivenmetrics

  • Path Ahead

    12

    Support operations in Iraq and Afghanistan

    Continue to adjust for new steady-state funding

    Identify and protect critical capabilities Government depots, shipyards, and arsenals

    Contract maintenance

    Issue Arsenal and Depot Source of Repair Instructions

    Institutionalize supply chain metrics-driven performance reviews

    Improve Life Cycle Sustainment Plans

    Publish PBL Guidebook and O&S Cost Management Handbook

    Establish Logistics Public-Private Partnership Council

    Create opportunities to generate efficiencies and partnerships

  • 2013 SecDef Mx Award Winners Field Maintenance:

    Phoenix Trophy - D Company, 3rd Battalion, 82nd Aviation Regiment, Task Force Talon,82nd Airborne Division, USA

    Marine Heavy Helicopter Squadron 361, USMC

    Submarine Performance Monitoring Program, Naval Sea Systems Command, USN

    USS EMORY LAND (AS 39), USN

    USS JOHN C. STENNIS (CVN 74), USN

    27th Special Operations Maintenance Group, USAF

    Depot Maintenance Robert T. Mason Trophy

    UH-60 Black Hawk Recapitalization Program, USA@nowhiteflagz